US hardware giant Lowe's has hammered its Masters joint venture partner Woolworths, accusing the retail giant of acting in "bad faith" after Woolworths pulled the plug on struggling hardware chain.

Lowe's on Monday said it had filed an urgent application in the Federal Court of Australia seeking the court appoint a independent liquidator to the Masters joint venture company Hydrox Holdings to "oversee the equitable and orderly wind up" of the company.

Lawyers for Lowe's this morning appeared in the Federal Court in Sydney to make its application for the intervention in the wind up of Hydrox.

The matter is set for another hearing before Justice Lindsay Foster on Wednesday.

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Woolworths pulled the plug on Masters last week.Credit:Wayne Taylor

Lowe's application sparked speculation it could throw a spanner in the works of Woolworths' three deals totaling $1.5 billion to sell off parts of the Masters business to other groups.

Earlier this month Woolworths announced its intention to shutter the failed Masters business and close its stores by December 11.

The decision of Woolworths to pull the plug on the joint venture came after the retail giant burnt billions on the failed business.

Nearly 8,000 jobs are expected to be lost when the business is closed. Woolworths' decision to walk away from the venture has also sparked a massive fire sale of Masters' products.

Woolworths' joint venture partner, the US hardware giant Lowe's, has been ordered to sell its shares in the joint venture.Credit:AP

Lowe's court action highlights the strained relationship between the two companies that launched the Masters chain in 2009.

"Lowe's also alleges that Woolworths has conducted the affairs of Hydrox in a manner oppressive and unfairly prejudicial to Lowe's, including by wrongfully and in bad faith seeking to terminate its joint venture agreement and by seeking to exclude Lowe's from the management of Hydrox," the company said in a statement.

Woolworths chairman Gordon Cairns.Credit:Louie Douvis

"Despite every effort to reach a fair resolution with its JV partner, Lowe's has been left with no other option but to seek the guidance of the court to achieve an equitable and orderly wind-up of the Masters business," the Lowe's statement says.

The company said that it had acted in good faith "at every stage" in its development and operation of Masters and had been an "engaged investor, a committed partner and proud employer".

"On the other hand, Woolworths has engaged in oppressive conduct, including by invalidly and in bad faith attempting to terminate the JV."

Woolworths announced last week would sell its wholesale Home Timber & Hardware business to Metcash, about 80 Masters stores and developments sites to a group of property investors led by some of Australia's richest families and the stock within the Masters' store to GA Australia.

The retailer hopes to make $500 million from the deals once costs of closing out the business is taken into account.

The property deal with Chemist Warehouse owner the Gance family and the owners of the Spotlight and Anaconda retail chains Morry Fraid and Zac Fried is conditional on Lowe's approval.

A spokeswoman for Woolworths said the retailer was yet to be served with documents relating to Lowe's application.

"The transactions relating to the Home Timber and Hardware sale and Masters inventory clearance by GA Australia are proceeding as announced," the spokeswoman said.